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Significance of Cross-cultural Trust in Streamlining Supply-chains for Global Enterprises

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  • R. Ray Gehani

    (University of Akron, College of Business Administration, Akron, Ohio)

Abstract

In high-velocity global markets, streamlining enterprise supply-chains and increasing trust can reduce high transaction costs. In this article, we integrate previous research studies on the evolution of supply-chains for global enterprises and the role of trust in inter-organizational transactions. We propose that the streamlining of supply-chains with low intermediation is most likely to be associated with the selection of tristworthy agents, deployment of trust-building interactions, and the institutionalization of trust in the participating enterprise. Future implications for researchers and practitioners include the study of resistance to change for implementing streamlined supply-chains.

Suggested Citation

  • R. Ray Gehani, 2000. "Significance of Cross-cultural Trust in Streamlining Supply-chains for Global Enterprises," Global Business Review, International Management Institute, vol. 1(2), pages 173-192, August.
    • Handle: RePEc:sae:globus:v:1:y:2000:i:2:p:173-192
    DOI: 10.1177/097215090000100202
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    References listed on IDEAS

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    1. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
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